Debate resumed from 6 March 2012.

Mr JOHN ROBERTSON (Blacktown—Leader of the Opposition) [5.38 p.m.]: I lead for the Opposition on the Electricity Generator Assets (Authorised Transactions) Bill. The bill is not about electricity generators or even privatisation. It is about trust, honesty and integrity. More accurately, it is about the Government's lack of any of those qualities. The bill stands as an undeniable testament to the Premier's complete lack of honesty and integrity and as a massive breach of trust with the people of New South Wales. Premier O'Farrell came to the last election promising to be whiter than white: he promised to raise the bar on ministerial standards and accountability; he promised, in relation to electricity, that he was "prepared to be upfront with the people of New South Wales about our plans". And he promised that he had absolutely no plans to privatise the State's electricity generators.

Yet today the O'Farrell Government brings forward a bill to sell off the State's publicly-owned generator assets. The simple truth is that this bill is a slap in the face for every voter who backed Barry O'Farrell for Premier of New South Wales—in fact, a slap in the face for every person in this State who listened to the Premier's promises and entrusted him with his electoral mandate. Throughout the past 11 months the Premier has tried to weasel and worm his way out of this promise, but there is no arguing the facts. In 2007 in his reply to the Budget Speech, the member for Ku-ring-gai, when Leader of the Opposition, put forward the sale of retail electricity to fund a new Infrastructure Fund. He was at pains to show his proposed sale of electricity assets would not include the sale of the generation poles and wires when he stated:

I stress again: the sale of the retail electricity business does not involve any sale of those State assets responsible for the generation, transmission and distribution of electricity.

In 2008 the now Premier opposed the long-term leasing of electricity generation assets. And just weeks before the election the Premier made a solemn commitment not to privatise electricity in what will go down in history as the Lithgow declaration. In the Lithgow declaration the member for Ku-ring-gai said:

We have absolutely no plans to privatise either the generators or the poles and wires.

Those were the statements of the Premier recorded in the Lithgow Mercury on 28 January 2011. Yet today, in government, the Premier has gone back on his promise, turned his back on the Lithgow declaration, and is selling the publicly owned generators. This is just another sad chapter in the Premier's already growing, and long, list of examples of saying one thing in opposition and doing the complete opposite in government—just like his promise to keep electricity prices low. On 24 June 2010 the now Deputy Premier called on the then Government to reject the Independent Pricing and Regulatory Tribunal recommendations with regard to price settings. On 1 February 2011 the Premier said:

The New South Wales Liberals and Nationals support any measures to reduce the impact of power prices.

Then, in July last year, the Premier showed complete contempt for the public by passing on an 18 per cent rise in electricity bills. And we know, when it comes to electricity prices, there is more pain to come from this Government in July this year. But it goes further. Not only is the Premier blatantly and remorselessly breaking crystal-clear election promises; he is also breaking the five conditions on electricity privatisation set down by the Coalition in 2008—conditions that its members described as being "fundamental to protecting the public interests". I will read those conditions because it is pertinent to this debate to highlight the fact that what we heard from the Coalition in opposition is vastly different, on this and so many other issues, to what it does in government. Condition 1 was:

All sale and/or lease arrangements be subject to the Auditor-General reporting to Parliament before finalisation of the sale or lease. These arrangements would include—but would not be limited to:

· timing and price;

· conditions for workers, pensioners and low-income earners; and

· price guarantees for consumers.

Premier O'Farrell made no commitment that a sale of the State's generators would be subject to an Auditor-General review and parliamentary debate before the transaction is finalised. Condition 2 was:

Completion, release and adoption of a rural communities impact statement focusing on, among other issues, jobs, prices and services levels.

No rural communities impact statement has been released for debate on how this privatisation of electricity generators will affect jobs, prices and service levels in rural and regional New South Wales. This bill will be a moral test for The Nationals members of Parliament like the member for Upper Hunter, who is not in the House, the member for Bathurst, who also is not in the House, and the member for Orange. Those members were elected on a platform that they would oppose electricity privatisation. Let us see what they do when it comes to voting on the bill. Will they do the right thing and join members on this side of the House in a vote against the privatisation of electricity generators in their electorates, a proposal that will put at risk hundreds of local jobs? Or will they turn their backs on their local communities, despite being elected on this anti-privatisation platform? This will be a test for The Nationals. It will be a test of whether there will be yet another example of The Nationals failing to stand up for the interests of regional and rural New South Wales—along with its failure to match Federal funding for duplication of the Pacific Highway. Condition 3 was:

Establishment of an independent oversight body comprising the Auditor-General, a community representative and a financial expert to monitor the use of funds realised from the sale.

The funds are proposed to go into Restart NSW, with funding being released on a discretionary basis by the Treasurer—with no community representation. Infrastructure NSW might be asked to put forward some recommendations. The problem with Infrastructure NSW, as all members of this Chamber know, is that it is filled with Liberal Party mates. There is no financial expert sitting on Infrastructure NSW. And, most damning of all, it has not a single community representative. Those on the Government side would like to tell us that Nick Greiner is broadly reflective of the community. Well, there is a lot I could say about Nick Greiner, but I will resist saying anything other than that Nick Greiner cannot pass himself off as community representative. There is one thing he is not, and that is a community representative.

The ASSISTANT-SPEAKER (Mr Andrew Fraser): Order! Does the member for Wakehurst rise on a point of order?

Mr Brad Hazzard: No, Mr Assistant-Speaker. I put my hand on the lectern while listening with interest.

The ASSISTANT-SPEAKER (Mr Andrew Fraser): Order! There is no point of order.

Mr JOHN ROBERTSON: I would have thought it an act of disorder for a member to approach the lectern without having the call. I would have thought the Leader of the House would know that. Condition 4 states in part:

... establishment of a parliamentary oversight committee to guarantee delivery of improvements in clean, green and renewable energy investment resulting from the sale.

No oversight committee has been proposed or established to ensure any proceeds from an asset sale are used to promote green and renewable energy. In one of the most blatant acts of hypocrisy, the Premier joined the Prime Minister to announce the Clean Energy Finance Corporation and the 40 jobs it brings to Sydney. The Premier demonstrated his hypocrisy by supporting Tony Abbott's campaign to shut down the Clean Energy Finance Corporation, yet last week standing with the Prime Minister and crowing that 40 jobs were coming to New South Wales in the Clean Energy Finance Corporation. Condition 5 outlined in 2008 states:

Retention of the so-called poles and wires businesses in public ownership, and appropriate safety nets for pensioners, low-income families and employees as determined by the Auditor-General.

The proposed asset sale has no protection or safety net. There are no guarantees in this bill for the retention of poles and wires businesses in public ownership. There are no safeguards in this bill against price rises for pensioners. There is no safety net for household and family electricity bills and there is no protection in this bill for low-income families. The Coalition said that its electricity asset sale conditions were fundamental to protecting the public interest, but the Premier is ignoring every single one of them in his sale of the electricity generators. We must ask: If it is not in the public's interest, in whose interest is it? The Premier is desperate to sell off our electricity assets because he is covering up his inability to manage the State's finances. That is despite the promise from the Premier before the election that he would stop government treating electricity companies as cash cows and using them to cover up budget deficits.

In less than a year the Premier has destroyed the budget, plunging this State into deficit for the next four years and doubling the Government debt to more than $15 billion, despite the former Labor Government leaving it with a $1.3 billion surplus. Those on the other side might like to crow about what they have been arguing is a black hole, but I suggest each and every one of them go and read their own Treasurer's Budget Speech. In his Budget Speech the Treasurer acknowledged that there was a surplus in the budget when he took office. That does not come from us; that comes from the Treasurer. In his speech he said there was a budget surplus of $1.3 billion and in less than a year we have seen the Government plunge us into deficit. The problem is that the deficit will not end in four years' time; the Premier is reportedly planning to go even further with his electricity sale plans. Late last year the Daily Telegraph reported that sources had stated:

Mr O'Farrell's office was quietly briefing an angry business community that the government would go with a plan to sell the poles and wires at the next election—2015.

And the Schott report recommended that:

The Government should set up a specialised unit to investigate and restructure for the lease or sale of assets and businesses ...

We can now expect that the Premier will establish an asset sales hit squad charged with selling off as much of the State's silverware and farms as possible to prop up an inept Government that is unable to manage the State budget and the economy. The Premier has broken his promise not to sell off the State's electricity generators. He has thrown away his own guidelines for the sale of any public electricity assets—guidelines that he said were fundamental to protecting the public interest—and he is planning to go further, with plans afoot for full privatisation. In less than 12 months the people of New South Wales have learnt that they cannot trust this Premier.

The Premier is thumbing his nose at the public, he is breaking the clear commitments he made to the public and he is selling off our State's future to cover up his inability to manage the State's economy. We continue to see a Government led by a Premier who said anything to get himself into office, but now that he is there he cannot be trusted to keep those commitments. We oppose the bill. We know that this is bad for New South Wales but, more importantly, it is bad for consumers and it is bad for families struggling to make ends meet who will suffer at the hands of this Government if it sells off these electricity generators. The Opposition opposes the bill.

Mr CHRIS HARTCHER (Terrigal—Minister for Resources and Energy, Special Minister of State, and Minister for the Central Coast) [5.53 p.m.]: I support the Electricity Generator Assets (Authorised Transactions) Bill 2012. At the commencement of his speech we had the benefit of a number of quotations from the Leader of the Opposition that related to the Premier and statements made by the Premier. I will begin my speech with some quotations about the Leader of the Opposition and his comments. The first quotation is an open letter that Paul Keating, the former Prime Minister, wrote to John Robertson on 27 October 2008:

When I met you and went through the history of the establishment of the east coast electricity market by the Government I led in the 1990s, and why the privatisation of the New South Wales power stations was consistent with the benefits of that market, you never offered one serious point in rebuttal. Not one cogent economic argument to thwart the logic. You batted the argument to one side, implying it would somehow be sorted out before the rupture arose. But instead, like a banshee on a rampage, you tore at the Government's entrails until its viability was effectively compromised.

That is what former Prime Minister Keating said about John Robertson and his views on electricity privatisation. Former Labor Senator Steve Hutchins—the Transport Workers Union king, the man who was such a power figure in the right wing of the New South Wales Labor machine—said about electricity privatisation and John Robertson:

It is ironic that the man who destroyed Labor in power is (now) the party's leader in Opposition.

At every level, Labor spokesmen shudder when they speak about John Robertson and electricity because John Robertson was elected on a platform of opposing privatisation but his first act as Minister for Corrective Services was to privatise a prison—the anti-privatiser became Labor's first privatiser.

Mr Nathan Rees: That's misleading.

Mr CHRIS HARTCHER: The member for Toongabbie said "That's misleading" with a straight face. The member for Toongabbie knows exactly what happened because he was a Minister in the Iemma Cabinet when Iemma was rolled by Robertson on privatisation—when Bernie O'Riordan, John Robertson and all the boys got together and said, "Let's roll Iemma. Let's install Nathan Rees", and then, of course, Nathan Rees did not do what the right wing wanted so the roll continued. It is not for me to go into the long story of John Robertson's betrayal of every principle that he supposedly stood for when he brought in privatisation. It is not for me to point out the massive inconsistencies in his position as trade union boss, trade union supremo, and his actions in government, because that is all on the public record—study after study of what he did when he was running the trade union movement and what he did when he was in government.

The whole argument for electricity privatisation, so eloquently put by the Treasurer, was put again and again by Morris Iemma, by the Government in which Nathan Rees was a Minister and by the former Labor Government when it advocated in this Parliament—starting with Bob Carr and Michael Egan, then Morris Iemma, then Eric Roozendaal and following through at every level of the Labor Party—the privatisation of the electricity generators in New South Wales. That was Labor caucus policy in this State. But it was not Labor conference policy and the differentiation came when Bob Carr was rolled at the annual conference and then when Morris Iemma was rolled at the annual conference. The people of New South Wales have seen that it does not matter if you vote Labor at a State election because the decisions will not be made by the elected government that you vote for. They will be made by the trade union bosses in Sussex Street. It was the nightmare that came true.

The New South Wales Government understands and acknowledges the public interest in privatisation, especially in relation to essential services such as electricity. It also understands the cost-of-living pressures–including the spiralling electricity prices—facing the people of this State. The Government has placed these concerns at the centre of consideration of these issues and is acting in the interests of all New South Wales consumers to keep electricity prices as low as possible. The Government has reaffirmed its 2011 election commitment to retain ownership of the electricity network businesses, the poles and wires. The Government is committed to correcting the incompetence and mismanagement of the power system that has occurred over the past 16 years. As part of an election commitment, the New South Wales Government established a special commission of inquiry into the former Government's electricity transactions. The Honourable Justice Brian Tamberlin, QC, was appointed as special commissioner. The Government undertook this inquiry to make an informed decision on the future use of electricity assets.

Guided by the industry experts and the Tamberlin report, the Government will implement the recommendations of the special commission into the electricity transactions, including the sale of some electricity assets. This sale will include the Eraring, Delta West, Delta Coastal and Macquarie Generation generators, the generation development sites previously identified, and a sale or lease of the Cobbora mine. With the implementation of these recommendations, New South Wales consumers will benefit from a more competitive electricity sector, which will help to put downward pressure on rising electricity prices. Like the Owen inquiry before it, the Tamberlin inquiry found that:

It is consistent with a competitive electricity market that the retail businesses and wholesale generation businesses be privatised.

The revenue raised through this sale will be passed on to the people of New South Wales to increase downward pressure on power prices. The Government expects that its approach will generate more competition in the electricity sector, adding further downward pressure on power prices for consumers. However, the privatisation of generators is only one step to help minimise the impact of electricity price increases. The Government is implementing a range of policies to reduce the upward pressure on electricity prices. We have capped electricity dividends at forecast levels. We have requested the Australian Energy Market Commission [AMEC] to undertake an independent review into the setting of future reliability standards for electricity distribution networks.

We have also called on the Commonwealth to immediately compensate New South Wales households for the added costs to their bills from the Federal renewable energy target. This follows Independent Pricing and Regulatory Tribunal advice that a major impact on its announcement of electricity price increases is the financial cost to retailers of complying with obligations under the Commonwealth Government's renewable energy target. Finally, as per our election commitment, the Government will be merging the three New South Wales electricity distribution businesses to deliver more than $400 million of cost and efficiency savings over four years. Members of this Government are committed to helping the people of New South Wales get the maximum return on their assets.

We are committed to establishing a campaign for downward pressure on electricity prices and we are committed to maintaining our integrity to the public. Those opposite pledged again and again to sell off the power assets and they assassinated Morris Iemma because he had the foresight to say the sale must go ahead. Opposition members are the inheritors of Bob Carr and Morris Iemma, but they lack the integrity to do what those former Premiers wanted to do, which was get the maximum return for the people of this State. Every member opposite is a captive led by John Robertson who was elected on a platform of anti-privatisation but who then privatised Parklea Correctional Centre. Members opposite are sell-outs. If I had more than 13 seconds remaining for my speech, I could say something about every one of them. The current Government stands for the people of this State. It has integrity and will honour its election commitments.

Ms TANIA MIHAILUK (Bankstown) [6.04 p.m.]: I love the way the member for Terrigal rewrites history. We needed a good laugh this afternoon. The sale of electricity generators is yet another broken promise by this Government. Before the election the Premier made a promise to the people of New South Wales to not support electricity privatisation. I am sure the Premier regrets saying this in January 2011in Lithgow:

We have absolutely no plans to privatise either the generators or the poles and wires.

He made that commitment then, and a couple of days later he said:

We have ruled out the sale of poles and wires because that is where the jobs are and we are determined to protect jobs.

What a load of hogwash. The Premier has decided that no longer matters. Once again the Government has clearly demonstrated that it is willing to betray the trust of the people of New South Wales.

ACTING-SPEAKER (Mr Gareth Ward): Order! The member for Bankstown will be heard in silence. I call the member for Drummoyne to order.

Ms TANIA MIHAILUK: This Government already has declared war on workers by slashing the entitlements of nurses, teachers and police officers. Electricity workers will be the next to go. The Premier has to front up to the people and apologise for breaking his promise. In May 2011 the Treasurer said that during the term of the O'Farrell Government, Parliament would continually monitor and scrutinise the actions of Government. What another load of hogwash. It was a noble sentiment, but it is not reflected in the content of this bill. Let us have a good look at this bill. Part 2 clause 6 specifies that the Treasurer will authorise deductions made from the proceeds of the sale. Part 3 clause 7 provides that the Treasurer has and may exercise all such functions as are necessary or convenient for the purposes of an authorised transaction. Part 3 clause 9 grants the Treasurer control of the transaction companies for the purposes of an authorised transaction.

Part 3 clause 12 allows the Treasurer to authorise another Minister to exercise functions in relation to particular assets, rights and liabilities—that is of course if he does not have the ticker himself. Part 4 clause 14 gives the Treasurer authority over staff transfers. The bill puts complete responsibility for all matters relating to this sale into the Treasurer's hands. This bill is a 60-page blank cheque for the Treasurer to act as he deems appropriate. If the Treasurer believes that he should be accountable to Parliament why is there no parliamentary oversight of this process in the legislation? There must be parliamentary oversight of the Treasurer's role in the sale of electricity assets. I know the Treasurer is probably relieved that after handing half of his responsibilities to the Minister for Finance, the Premier has finally trusted him with some responsibility, but that does not justify the lack of appropriate scrutiny in this legislation.

Mr John Sidoti: That is not your wording.

Ms TANIA MIHAILUK: It is, actually. In 2008 the Coalition put forward five conditions that would have to be met for it to support electricity privatisation. The Coalition said that these conditions were fundamental to protecting the public interest. I ask the Treasurer: If those conditions were so vital in 2008, why are they not being met in 2012? The Coalition demanded that all sale and all lease arrangements be subject to the Auditor-General reporting to Parliament before finalisation of the sale. Why is there no requirement for that in the bill? Why is there no mechanism to require the Auditor-General to review the sale before or after the fact?

The Coalition also demanded the completion, release and adoption of a rural communities impact statement focusing on, among other issues, jobs, prices and service levels. We now know that does not concern the member for Tweed, who has been staring into too many sunsets. Has a rural communities impact statement been prepared? Why not? Could the Government fear what the statement might say about its proposal? The Coalition also demanded the establishment of a parliamentary committee to guarantee delivery of renewable energy investment and an independent oversight committee to monitor the use of the funds resulting from the sale.

The Coalition also demanded the provision of appropriate economic safety nets for pensioners, low income families and employees, as determined by the Auditor-General, yet that is not provided in the legislation. I ask the Treasurer to address these concerns during his reply. My electorate of Bankstown and other parts of western Sydney have vast areas of low-income families, so the provision of an adequate economic safety net concerns me. I ask the Treasurer to explain during his reply why safety nets are not provided in the bill. This bill represents a violation of the promise made by the Coalition prior to the election. The Opposition opposes the legislation.

Mr STEPHEN BROMHEAD (Myall Lakes) [6.09 p.m.]: I support the Electricity Generator Assets (Authorised Transactions) Bill 2012.

Ms Tania Mihailuk: Shame.

Mr STEPHEN BROMHEAD: It is interesting to listen to Opposition members and what they have to say because we soon realise that their speeches totally lack substance and any real argument. When members of a political party decide to attack legislation, it is fundamentally important that they should first demonstrate credibility.

ACTING-SPEAKER (Mr Gareth Ward): Order! I call the member for Cabramatta to order.

Mr STEPHEN BROMHEAD: When we look back over Labor's 16 years in government, it is obvious that Labor totally lacked credibility. What do Labor Party icons say about members of the New South Wales Labor Party? Let us talk about Michael Costa, who is a former Labor heavyweight. What did he say about the Leader of the Opposition, who led for the Opposition during this debate? He said:

... Robertson has neither the political intellect nor the political courage to be a credible alternate premier.

Mr John Sidoti: Who said that?

Mr STEPHEN BROMHEAD: Michael Costa from the Labor Party. Paul Keating wrote to the Leader of the Opposition and said:

If the Labor Party's stocks ever get so low as to require your services in its parliamentary leadership, it will itself have no future.

Another political heavyweight and former President of the Australian Labor Party, Senator Steve Hutchins, said:

... New South Wales Labor now led by an undeserving John Robertson is in Opposition after four of the most shameful years in its history.

Importantly, Senator Hutchins went on to refer to credibility. If a politician attacks legislation or a policy, he or she must have credibility and integrity. Senator Steve Hutchins said that the credibility of the Labor Party was already shot following its emphatic defeat on 26 March and that, if it is even possible, the Labor Party's reputation continues to be trashed under the leadership of John Robertson. On 26 March last year the people of New South Wales devastated the Labor Party—that once proud political party—and Labor members know when they make a speech against Coalition policy or legislation that they have no credibility.

The Leader of the Opposition referred to matters such as a breach of trust and said there was no promise to sell electricity industry assets. The belief in my electorate and throughout the entire media is that the Liberal and Nationals Government will not sell the poles and wires, and we are living up to that promise. We will not sell the poles and wires. This legislation is about generators. We did not suddenly decide that this legislation was what we were going to do. We relied on the Tamberlin report that followed a special and wide-ranging commission of inquiry. Mr Tamberlin's recommendation was that the electricity generators should be either leased or sold. Labor went to the 2007 election and said, "We will not sell electricity assets." As soon as the election was over, Labor members were falling over themselves to sell electricity assets.

ACTING-SPEAKER (Mr Gareth Ward): Order! Opposition members will come to order. The member for Myall Lakes will be heard in silence.

Mr STEPHEN BROMHEAD: They sold the electricity assets. It was the dud deal of the century. To cover it up and in an attempt to protect themselves from the community, accountability and proper inquiry, Labor prorogued Parliament, and Parliament was shut down for five months. That was a denial of democracy. It was far worse than any other previous incident in the history of this Parliament. The people of New South Wales know that and that is why they delivered an unambiguous message on 26 March. Unfortunately for Opposition members, they still have not got the message that the people of New South Wales do not accept their arguments because they have no credibility.

Mr John Sidoti: That is right.

Mr STEPHEN BROMHEAD: They have no credibility at all. The Leader of the Opposition also referred to hypocrisy. No more needs to be said other than, "Hypocrisy, thy name is Labor." It was 16 years of incompetence, and for 16 years the people of New South Wales accepted Labor's lies. Before each election, Labor would promise, "We will have some highways", and, after the election, the promise was scrapped.

Mr Guy Zangari: Point of order: My point of order relates to relevance under Standing Order 129.

ACTING-SPEAKER (Mr Gareth Ward): Order! There is no point of order. Standing Order 129 relates to relevance in question time, not to relevance in debate.

Mr Guy Zangari: I ask you to draw the member for Myall Lakes back to the leave of the bill.

ACTING-SPEAKER (Mr Gareth Ward): Order! The member for Fairfield will resume his seat. I remind members that when they take a point of order, they should know the standing order to which they wish to refer. Standing Order 129 relates to relevance during question time, not to relevance during debate on agreement in principle.

Mr STEPHEN BROMHEAD: For the benefit of those on the opposite side of the Chamber who are too dumb to understand, I point out the relevance of credibility.

ACTING-SPEAKER (Mr Gareth Ward): Order! The member for Myall Lakes will not cast reflections of that nature on Opposition members.

Mr STEPHEN BROMHEAD: I apologise to all the dumb members of society for mentioning them in the same sentence as Labor. The point I make is that politicians who decide to attack the Government must have credibility, and that is relevant to this debate because, when it comes to the sale of electricity, Labor has no credibility. The other factor relating to relevance is that the Leader of the Opposition referred to credibility, trust and hypocrisy during his speech on this bill. He also referred to privatisation, and it must be remembered that he was the one who privatised prisons. It was Labor Party policy to sell electricity. The relevance is that there is no integrity in Labor's argument because, as I said earlier, Labor members fell over themselves to sell electricity assets after the 2007 election.

Some other schoolteachers in the building cannot understand that. The member for Bankstown referred to broken promises, so let us consider that statement. The people of New South Wales endured 16 years of broken promises and incompetence. An example of Labor's incompetence is that $500 million was wasted on the Rozelle Metro without a sod being turned, and $100 million was spent on the Tillegra Dam without a blade of grass being disturbed. The inertia was scandalous. In the four years prior to the 2011 State election, not a thing was done. Labor treated the electorate at large like absolute idiots. At the 2011 State election, the people of this State, particularly constituents in regional areas, sent a message to the Labor Party that they no longer accepted what Labor was telling them and they did not accept at all that Labor had anything worthwhile to say. A quick check of recent polls shows that the voters' message has not changed.

Unfortunately for Opposition members, who collectively would not have sufficient brains to cover the knuckle of a canary, they have not accepted the verdict of the people. What is even more unfortunate for Labor members is that collectively they have a glass jaw and are unable to accept criticism. Unfortunately, they have not learnt the lesson. The sale of electricity generators is good for New South Wales. It will create more competition in the energy market. It puts downward pressure on power prices for consumers. It will avoid the need for upgrades in the future. It frees up funds for infrastructure in New South Wales. Most importantly, the legislation protects the jobs of employees.

As I said earlier, this came about because of the Special Commission of Inquiry into Electricity Transactions conducted by Brian Tamberlin, QC. That inquiry released its findings on the sale of electricity assets in New South Wales in October last year. That report recommended that the Government sell or lease those generation assets, which is good for New South Wales. It is good that we have money coming in for infrastructure, almost 40 per cent of which is for regional New South Wales. The member for Bankstown can laugh about the people of regional New South Wales but they have been struggling for 16 years under Labor and they are looking forward to Infrastructure NSW and this Government delivering on infrastructure, and they are looking forward to the Government delivering on its pre-election promises. [Time expired.]

Mr NICK LALICH (Cabramatta) [6.20 p.m.]: I speak in debate on the Electricity Generator Assets (Authorised Transactions) Bill 2012 which has as its intention to authorise the sale of the State's electricity generator assets to the private sector. The Treasurer stated that the bill will enable the sale of the State's generators, including the Eraring and Delta West generators. The O'Farrell Government will tell us that it is following the findings of the Special Commission of Inquiry into Electricity Transactions conducted by the Hon. Brian Tamberlin, QC. I revisit a key finding of the Tamberlin report that puts to bed all the criticism that was levelled at the former State Labor Government over electricity transactions:

The Inquiry is of the view that:

a. The governance structure adopted;
b. The process by which the assets were offered to the market; and
c. The decision to sell the assets the subject of acceptable bids were, in the circumstances of the then Opposition's position not to support the legislation, the economic climate, the expert advice available to the Government and the uncertainty over carbon pricing, reasonable and appropriate.

The term "reasonable and appropriate" is the hallmark of any good government and something to which the O'Farrell Government should aspire instead of the callous, uncaring and incompetent performances we have witnessed so far. It is important that these independent findings are put on the record after all the misinformation we have received and the misleading statements we have heard from Government members. The Treasurer has told us that the purpose of this bill is to free up funds for infrastructure spending. In 2008 members of the Liberal-Nationals Coalition robbed this State and local communities of important funding channels just to gain political advantage. They have a lot to learn. One does not become a politician to play politics; one does it to help the people and the communities of New South Wales. Members who contributed earlier to debate on this bill said that current Opposition members wanted to sell the power industry, which is not true.

The policy-making body of the Australian Labor Party is its State conference. State conference voted down any intention to sell the electricity industry. We are sticking with that. We will not sell the power industry. We are constant in our decision; it is the Government that has changed its mind. Barry O'Farrell did not do what businesspeople were telling him to do, that is, to sell the electricity industry, support the Iemma Labor Government and obtain finance for infrastructure. At the time he did not listen to the businesspeople and he did not support the proposal by the Labor Party to sell the electricity industry. Labor's State conference decided it was not to be sold and that is what we are sticking to. Our decision has been constant; we do not want the electricity industry sold.

This bill, under the guise of electricity generators, is all about trust and honesty, which is what we do not have from the Government. The Government speaks about money going into infrastructure spending but where is its honesty and integrity when it boasts about commencing the South West Rail Link? The former Labor Government and not the Liberal Party commenced work on the South West Rail Link. There is no escaping that fact, no matter how creative Government members are with the truth. The trouble is that Government members are very loose with the truth. The former Labor Government commenced work on the South West Rail Link. The Labor Opposition remains committed to looking after the families and communities of south-west Sydney. This Premier, who calls himself the Minister for Western Sydney, had the nerve to cancel a much-needed commuter car park in Cabramatta and Canley Vale. The Premier should know how important parking is in Cabramatta but he has not been to Cabramatta since the last election.

Mr Bryan Doyle: Point of order: My point of order relates to relevance under Standing Order 76.

ACTING-SPEAKER (Mr Gareth Ward): Order! I remind all members that Standing Order 76 is the correct standing order for relevance during debate and Standing Order 129 is the correct standing order for relevance during question time. The member for Campbelltown has rightly pointed out that the member for Cabramatta has strayed well outside the leave of the bill. While I rule that it is legitimate to include some history and preamble in a debate, I think services in south-western Sydney are outside the purview of the bill, which relates to electricity generation. I uphold the point of order and draw the member for Cabramatta back to the leave of the bill.

Mr NICK LALICH: Barry O'Farrell has not been to my area since I defeated his dream candidate, Dai Le, at the last State election—the second time she was defeated. This bill makes no commitment to ensure that all persons employed by the generators will be guaranteed further work with another public sector agency. The problem with this bill is that there is no guarantee for all workers—a hallmark of the O'Farrell Government. In the past 12 months Barry O'Farrell has crucified workers at every opportunity. Unlike the 2008 Iemma Government bill and the gentrader agreements, there is no provision in this bill to protect the entitlements or the conditions of workers who transfer to the purchasers of the private entities.

Again, workers' rights are not being looked after which does not surprise members of the public. Taking the axe to workers' rights has become the calling card of this O'Farrell Government. Who can forget the enormous public sector rally that marched on this House in protest of the Premier's unfair public sector reforms? Who can forget the thousands of New South Wales police who converged on Macquarie Street baying for the Premier to let him know what they thought of his changes to the Police Death and Disability Act. This bill gives the Treasurer unfettered power to do everything necessary to transact the transfers contemplated by the bill. It remains to be seen whether these actions hold up to muster. The Opposition opposes this bill.

Mr TIM OWEN (Newcastle) [6.26 p.m.]: After hearing the incoherent ramblings of the policy-free, do-nothing Opposition—

ACTING-SPEAKER (Mr Gareth Ward): Order! Opposition members will come to order. The member for Newcastle will be heard in silence.

Mr TIM OWEN: —it gives me great pleasure to talk in debate on the Electricity Generator Assets (Authorised Transactions) Bill 2012. Opposition members should all sit back and listen as they might learn something. Let me get some of the facts on the table. The member for Cabramatta got one thing right—Treasurer Mike Baird introduced the bill to authorise the sale of the State's electricity generator assets to the private sector. As has been said by my colleagues on this side of the Chamber, this bill implements the recommendations of the Special Commission of Inquiry into Electricity Transactions conducted by Brian Tamberlin.

Mr Nick Lalich: Who wrote your speech?

Mr TIM OWEN: I wrote my speech. The Tamberlin report suggests that legislation should be enacted to enable the Government to offer for sale or long-term lease the Eraring and Delta West generators which are subject to gentrading agreements, and the Macquarie Generation and Delta Coastal generators. The report also recommended:

The Inquiry does not consider there to be any good purpose to be served by the State continuing to own generation assets in NSW.

Those are the facts and that is the good policy that we will implement. The New South Wales Liberal-Nationals Government is spending $7 billion more on infrastructure in its first four years than Labor did in its last four years. The O'Farrell Government is catching up on the infrastructure backlog left to it by those opposite.

ACTING-SPEAKER (Mr Gareth Ward): Order! I call the member for Cabramatta to order.

Mr TIM OWEN: The bill will only support further investment in the development of much-needed infrastructure for New South Wales. Those are the reasons why the Government is selling these assets. In line with this Government's election promise, the bill does not authorise the sale of the State's electricity distribution and transmission assets, or the poles and wires. The bill will enable the sale of the State-owned electricity generators Macquarie Generation, Eraring Energy and Delta Electricity and will result in the sale of electricity development sites or the leasing of Cobbora mine. In addition to the recommendations from Mr Tamberlin, the reason the New South Wales Government is selling generator assets is that it wants to do three key things: free up funds for infrastructure spending—something I do not think Opposition members understand—see more competition in the energy market, which will reduce prices, and help put downward pressure on power prices for consumers.

ACTING-SPEAKER (Mr Gareth Ward): Order! The member for Drummoyne and Opposition members will not engage in conversation across the table.

Mr TIM OWEN: They are the key reasons we are selling the assets. As I mentioned already, we are spending $7 billion more on infrastructure in the first four years than those opposite did in their last four years. This bill will release additional funds that will contribute to the Restart NSW Fund. The Government established that fund for major infrastructure projects of which 30 per cent will be invested in regional New South Wales to aid cities, such as Newcastle, to develop and prosper—something those opposite never did. One key reason the Tamberlin inquiry recommends the sale of assets is to encourage more competition in energy markets and encourage private sector investment in generation in New South Wales. The final report states:

The Inquiry does not consider that the objectives of a competitive electricity market or reliability of supply are advanced by maintaining the status quo.

With the sale of the generator assets the O'Farrell Government is thinking about the people of New South Wales. Our Government is recognising the sharp rise in electricity prices in recent years. Our Government is putting pressure on power prices for consumers and businesses. According to the Independent Pricing and Regulatory Tribunal [IPART], and Opposition members should listen to this—

ACTING-SPEAKER (Mr Gareth Ward): Order! Opposition members will come to order.

Mr TIM OWEN: —over the past five years under Labor electricity prices rose 60 per cent, while the consumer price index increased just 16 per cent.

Mr John Sidoti: How much?

Mr Chris Holstein: How much?

Mr TIM OWEN: Under Labor electricity rose 60 per cent, while the consumer price index went up only 16 per cent. This is more evident in regional areas where some customers of Essential Energy reportedly experienced increases in regulated electricity retail tariffs of around 85 per cent between 2004 and 2011. That is not what the people of New South Wales deserve—Labor needs to pay attention to that. It is important to note that the bill authorises the transfer of electricity generator employees to another public sector agency for the purpose of the sale. Transferred staff will be governed by their applicable awards, agreements and determinations. All employee benefits, including annual leave and superannuation, will remain the same. As stated by the Treasurer and this side of Government, protection and transfer mechanisms offered to employees will be an all-important consideration during the negotiation of transaction agreements. Employee protections are part of this bill despite the scaremongering from the Opposition and the unions. The Liberal-Nationals Government is getting on with the job of rebuilding the infrastructure that this State desperately needs.

Mr Nick Lalich: It hasn't started. You talk about it but nothing is happening.

Mr TIM OWEN: We are building it. It is starting. It is moving forward at a great rate, especially in regional areas such as my electorate.

Mr Nick Lalich: We always opposed it and we still do.

Ms Anna Watson: What are you doing? All you are doing is slashing and burning. You're not doing anything. You're only slashing and burning jobs, jobs and more jobs.

ACTING-SPEAKER (Mr Gareth Ward): Order! Opposition members will come to order.

Mr TIM OWEN: The member for Shellharbour should note that our Government is being honest with the people of New South Wales. We are delivering on our commitments on electricity reform by undertaking an independent inquiry into Labor's gentrader sale and implementing recommendations from the inquiry. It is all upfront and pretty straightforward. In comparison, former Labor Premier Mr Morris Iemma made the following statement in Parliament on 9 May 2007, "There will be no sale of electricity generation, transmission or distribution." However, Labor spent the next four years trying to do exactly that. An article reported in the media states:

Iemma and former New South Wales Treasurer Michael Costa are ruthlessly pushing for the sale despite lemma's pre-election assurances that he would never privatise electricity ...

The article further stated that on the sale of generators Iemma said:

[it is] the most important micro-economic reform in this state in decades.

That is what Labor said. We are doing the job. Therefore I do not expect those opposite today to object to the Electricity Generator Assets (Authorised Transactions) Bill 2012 considering that their Government pushed so hard for the sale for four years.

ACTING-SPEAKER (Mr Gareth Ward): Order! I remind the member for Cabramatta that he is on two calls to order. I call the member for Cabramatta to order for the third time.

Mr TIM OWEN: The introduction of the bill is evidence of this Government delivering real reform to drive and build infrastructure regeneration for this State. This bill is a key part of the Government's commitment in NSW 2021 to build the infrastructure our State needs and make a positive difference for our economy and the people of New South Wales. This bill will implement the recommendations of the Tamberlin inquiry and free up funds so desperately needed for our State's infrastructure. For this reason I commend the bill to the House.

Mr GUY ZANGARI (Fairfield) [6.34 p.m.]: I oppose the Electricity Generator Assets (Authorised Transactions) Bill 2012 in its entirety. This bill seeks to privatise the electricity generation infrastructure of New South Wales that in the long run will be to the detriment of the hardworking families of my electorate of Fairfield and throughout this State. What a difference four years makes in the life of Barry O'Farrell. If my memory serves me correctly, four years ago when Premier Barry O'Farrell was still Barry O'Farrell, Leader of the Opposition, he stood on this side of the Chamber and withdrew his support for a bill that would have achieved the very result that this bill aims to achieve.

Four years later, his Treasurer puts on the proverbial table an instrument seeking this Chamber's blessing to act on behalf of this Government to privatise the electricity generators of New South Wales. Essentially, the Premier and Treasurer are saying to the people of New South Wales, "Trust us" to secure the future electricity needs of the people of New South Wales by allowing the Treasurer overarching powers to sell off the very infrastructure that provides the homes of New South Wales with electricity. This bill is worrying. Part 3 of the bill which is headed "Facilitating authorised transactions" confers overarching powers on the Treasurer to facilitate and ensure the sale of electricity generators without any accountability to this Chamber.

Indeed, coupled with part 4 of the bill, which sets out the vesting powers of the Treasurer to facilitate the transfer of public utilities to the private sector, this bill creates an image akin to olden day James Bond movies with the Treasurer playing the part of a double agent trying to sell a dirty bomb to a rogue State. This analogy is further supported by the fact that this obvious lack of transparency is extended also to the supply of information to Treasury about the transactions of a State-owned corporation. According to schedule 2 to the bill, the safeguard governance embodied in section 29 (2) of the State-owned Corporations Act 1989 does not apply to a transaction by a State-owned corporation under the provisions of this bill. Section 29 (2) of the State Owned Corporations Act 1989 states:

The board of a statutory SOC must supply to the portfolio Minister such information relating to the affairs of the SOC or any of its subsidiaries as the portfolio Minister may from time to time request.

Why all the haste and secrecy? What does this Government have to hide with electricity privatisation? Perhaps more telling in this Government's venture to rid the State of ownership of its electricity generation infrastructure is its lack of objective now to go down this road after rejecting such a move about four years ago. Late last year the murmurs emerged to justify such a sale to implement the findings of the Tamberlin report. Indeed, in his agreement in principle speech the Treasurer stated:

Importantly, the bill implements the Government's response to the Special Commission of Inquiry into Electricity Transactions conducted by the Hon. Brian Tamberlin QC ...

However, as pointed out by the Tamberlin report, the Government needed to give reasons why it should sell its electricity generation infrastructure in New South Wales and provide a set of objectives to govern that sale. Despite such caution, it is clear from the Treasurer's agreement in principle speech that this proposed legislation lacks any justification to sell off the electricity generation infrastructure of New South Wales apart from selling off what belongs to the people.

It is selling off the very infrastructure that provides the people of New South Wales with a reliable supply of electricity on a daily basis. This infrastructure provides employment for thousands of everyday mums and dads. In short, it is infrastructure we rely upon on a day-to-day basis. To sell it off without any overarching objective and without contemplating the everyday realities of the people of New South Wales and the people whose livelihood is reliant on the energy industry is short-sighted and lacks vision. To borrow one of my favourite expressions from the Minister for Transport, it is mindless. I oppose the bill.

Mr CHRIS HOLSTEIN (Gosford) [6.40 p.m.]: I make a contribution to the debate on the Electricity Generator Assets (Authorised Transactions) Bill 2012. The main purpose of the bill is to authorise the sale of the State's electricity generator assets to the private sector. It also implements the Government's response to the recommendations of the Special Commission of Inquiry into Electricity Transactions, which was conducted by the Hon. Brian Tamberlin, QC. The bill enables the sale of the State's generators, including the Eraring and Delta West generators which are subject to the former Labor Government's gentrader contracts and agreements. In addition, this Government also intends to sell or lease the Cobbora mine and to sell electricity development sites. These businesses combined operate the major power stations that generate electricity in New South Wales.

If the question were asked as to the benefits to New South Wales from the selling of these assets the answer would be as follows: it will free up funds for infrastructure spending; it will create more competition in the energy market; it will help put downward pressure on power prices for consumers; and it will encourage private sector investment in generation. The bill allows flexibility in how the transaction is to be structured. In so doing, it allows for the optimisation of the size and quantity of the market offerings, enabling business and assets to be restructured prior to going to the market place. For example, the sale would be by way of a direct trade sale or a public float of shares. The final decision in this regard will be made after receiving expert advice and having regard to the market conditions at the time.

It is important to emphasise that this bill does not authorise the sale of electricity network business—in other words, the poles and wires. Why is it important to emphasise this? Before the other side start their usual scare campaign and misrepresentation of the facts, as they do on a regular basis, the Government announced that last November the electricity distribution and transmission business will remain in public ownership. In relation to the sale of the generators, an important consideration will be the protection and transfer mechanisms offered to employees during the negotiation of transaction agreements. The bill authorises the transfer of employees of the electricity generators to another public sector agency for the purposes of the sale. Also, transferred staff will maintain continuity of service and superannuation arrangements. These sales will directly benefit the people of New South Wales because they will free up funds that are much needed for infrastructure.

Following a decade of neglect by those opposite, approximately 30 per cent of these funds will be invested into regional New South Wales. As we are all aware, there has been a sharp rise in electricity prices. The good member for Newcastle pointed out that according to findings by the Independent Pricing and Regulatory Tribunal, electricity prices rose by 60 per cent in the last five years of the former Government—those opposite—whereas the consumer price index rose by only 16 per cent in the same period. These sales will help put downward pressure on power prices for consumers and businesses. This bill helps to deliver on the Government's commitments for electricity reform. The Government initiated the independent inquiry into Labor's gentrader sale and we are now implementing the recommendations of the inquiry. There have been a few interesting quotes from both sides of the House. I think the best one came from a James Bond movie. The Hon. Brian Tamberlin, QC, stated:

The inquiry does not consider that there is any good purpose to be served by the State continuing to own generation assets in New South Wales.

I commend the bill to the House.

Mr MARK SPEAKMAN (Cronulla) [6.44 p.m.]: Good government is about governing in the public interest and not for noisy vested interests. The Electricity Generator Assets (Authorised Transactions) Bill typifies the difference between those on this side of the House, who are interested in good government and the public interest, and those on the other side of the House, who are under the thumb of Unions NSW. The Government supports this bill because it wants to govern in the best interests of the taxpayers and consumers of New South Wales—not the Electrical Trades Union and Unions New South Wales, for whom the Opposition leader is a mouthpiece. This bill is in the interests of the consumers of New South Wales because it will increase downward pressure on prices. Under the watch of the previous Government—during the last five years of its governance—electricity prices rose 60 per cent.

Despite the scaremongering by the Opposition as to how the privatisation of generators will increase prices for consumers, in fact, under public ownership prices went up 60 per cent. The Victorian experience shows that the increased competition that privatisation brings increases downward pressure on prices and is good for consumers. This is good for taxpayers because modelling by Infrastructure Partnerships Australia estimates that somewhere between $3.3 billion and $6.5 billion will be released for spending on infrastructure. That is funding for roads, hospitals, police stations, train lines—all the things that were underfunded by the previous Labor Government. This bill is good for the taxpayers of New South Wales.

Do those in Opposition seriously want to tell us that projects like the North West Rail Link and upgrades to hospitals should not go ahead but a power station should stay featherbedded and under the domination of unions? Is that what the Opposition says? So that union mates of the Labor Opposition have a cosy arrangement, consumers should pay more and more for electricity—as they did during the last five years of the Labor Government? Is that what the Opposition says? This Government governs in the public interest—unlike the faceless men and women who control the Labor Party conference. This Government governs in the interest of the consumers. Is the member for Fairfield telling his constituents that they should pay higher electricity prices so that his union mates can have a cosy life in power stations?

Is the member telling his constituents that they should suffer from a lack of school and hospital maintenance so that we can featherbed power stations in New South Wales? This bill is in the public interest because it will put downward pressure on prices. It is good for consumers and taxpayers because it will unleash more money for infrastructure in New South Wales. It is a no-brainer. The Tamberlin inquiry concluded that, given the manifest disadvantages of the gentrader model, the State ought not to persevere with that option. The independent inquiry—one of the Government's election promises—concluded that there was no good purpose to be served by the State continuing to own generation assets in New South Wales. The objects of the bill are that a competitive electricity market and reliability of supply are advanced by maintaining the status quo.

Downward pressure on prices is good for consumers but so is increased reliability of supply. Privatisation of generators will increase the capacity for investment in generators and increase the reliability of supply. That is another advantage for consumers. For all those reasons it is a no-brainer. It is a no-brainer that the bill is in the interests of the wider public of New South Wales. We have not heard one cogent policy reason in opposition to this bill. Opposition members are about protecting their union mates. The Government will transform New South Wales and make New South Wales number one again for taxpayers and consumers. The Government puts the interests of the public above those of union mates. I commend the bill to the House.

Ms GABRIELLE UPTON (Vaucluse—Parliamentary Secretary) [6.49 p.m.]: I welcome the opportunity to speak in debate on the Electricity Generator Assets (Authorised Transactions) Bill 2012. This bill does the important work of authorising the sale of State electricity generator assets to the private sector, including those subject to Labor's gentrader contracts—contracts by which the former Government sold the output of the State electricity generation businesses but not the underlying assets. The gentrader contracts will be assigned to private sector purchasers of the associated generation assets. The bill also authorises the sale of electricity development sites and the sale or lease of the Cobbora coalmine.

There are a number of electricity generators in New South Wales, both State and privately owned. The largest is Macquarie Generation, a State-owned body, which owns and operates coal-fired power stations at Bayswater and Liddell. Delta Electricity, which also is State-owned, owns and operates Mount Piper, Vales Point, Wallerawang and Munmorah as well as a gas-fired station at Colongra. Because of the former Government's imperfect transactions, the output of Delta's power stations at Mount Piper and Wallerawang became subject to a long-term gentrader arrangement with TRUenergy, a wholly owned subsidiary of the CLP Group listed on the Hong Kong stock exchange. Eraring Energy is a State-owned corporation that owns and operates coal-fired power stations at Eraring and Shoalhaven, another generator asset. The output of Eraring is subject to a long-term gentrader arrangement with Origin, Australia's largest energy retailer.

The bill implements the Government's response to the recommendations of the Special Commission of Inquiry into Electricity Transactions conducted by the Hon. Brian Tamberlin, QC. The Tamberlin report warned that maintaining the status quo would not achieve the objective of a competitive and reliable energy market that the New South Wales community needs. Those are strong words indeed. The former Government was not sure whether it wanted to sell anything at all in the electricity sector, with pledges that there would be no sale of electricity generation, transmission or distribution assets. However, it set about doing just that. The former Government's link to unions in the electricity sector led to it turning itself into knots about what it would go forward on. And what a mess it got itself in when in 2010 there was a packaging of the sale of the electricity generator assets—an inordinately complex transaction. It was a sale that "dare not speak its name"—a sale that by another name failed to realise what good governance is about: the best value for the people of New South Wales.

The gentrader model was designed to allow the ownership of power stations to be retained by the government and the contractual rights to trade the electricity produced to be held by privately owned gentraders. It was the suboptimal option relative to a full sale of the assets. The main thing that option did was placate the unions, because there was no transfer of the underlying assets and the workforce. What a missed opportunity: important structural microeconomic reform in New South Wales was not undertaken and the people of New South Wales continue to pay the price in the form of higher electricity prices. Far from achieving reform that would move New South Wales toward helping develop a contestable National Electricity Market, the transactions saddled the people of New South Wales with risks—those relating to the electricity market, coal supply and the costs of operating and maintaining the generators.

Unfortunately, the O'Farrell Government cannot reverse those scrambled transactions. We would if we could, but it would be too costly and not in the interests of the State, as the Tamberlin inquiry found. This bill is important. It will facilitate things that the O'Farrell Government is determined to do—the things that the New South Wales voters showed they want by so strongly supporting us at the last State election, that is, de-risking our financial profile and making sure that commercial risks of generating electricity are not borne by New South Wales taxpayers. With the sale as proposed by this bill, we will not have to fund the ongoing maintenance of the generators and make major capital investment into the future generating capacity of this State. The sale proceeds will be paid into the Restart NSW Fund—a fund dedicated to underwrite major infrastructure projects, with 30 per cent of the funds being invested in regional New South Wales. We will invest the funds in important infrastructure never delivered by the former Government—roads, transport and hospitals.

Having private sector ownership will create more competition in the energy market. This side of the House thinks competition is a good thing; it brings out the best in all of us. In this case, competition will help put New South Wales residents first by putting downward pressure on energy prices. Any proposed sale will have to be approved by the Australian Competition and Consumer Commission to ensure there is no reduction in competition. Section 50 of the Commonwealth Competition and Consumer Act prohibits acquisitions that would result in a substantial lessening of competition in the market. There will be a rigorous process and detailed scrutiny of prospective bidders.

To make sure we realise the best outcome for New South Wales we need to plan for the sale. We need to set up transaction entities, and this bill facilitates that process. It permits the Treasurer to transfer staff to another public sector agency for the purposes of the sale. Transferred staff will maintain continuity of service and their superannuation arrangements. Industrial conditions will be preserved under part 4 of the bill. Under the bill, the sale can be by way of an initial public offering or a trade sale. Flexibility along these lines is critical so that the best value for the sale is realised for New South Wales—something the former Government just could not or would not do.

Under schedule 5 if the electricity generator assets are transferred via an initial public offering, maximum shareholder ownership levels will be set to ensure the business is not vulnerable to takeover at a critical time in its settling down. However, what form the final sale structure takes will depend upon market conditions and expert advice from those who run global asset sale transactions. This important bill commences the hard work—the reform—that the former Government failed to undertake. It provides the framework to engender more competition in the energy market, put downward pressure on power prices for consumers and free up funds for infrastructure spending that the people of New South Wales deserve. I commend the bill to the House.

Business interrupted and set down as an order of the day for a future day.

ACTING-SPEAKER (Mr Gareth Ward): Order! It being before 7.00 p.m. the House will now consider the matter of public importance.